ISSUEScreatePROFITStudy of Media Economics & Governance

byAIDIL YUDHA

AJIE PRASETYOGEMALA CITRA

NOVALITAPUTRAWAN YULIANDRI

Our goals -• To get the knowledge how media system works.• To know why media is considered as “an Industry”.• To see the reality of media business in Indonesia.• To see how brands & politician can profit media industry. And how smart

can they be?• To understand media regulation.• To deep further about media ownership.• To see media business from politic perspective.• To relate all those things above with the traditional media, and of course,

the new media.

PerspectivesTheoritical

Economy & IndustryEconomy & Politic

Public InterestProfessional

ECONOMICS

Media

ECONOMICSMedia

What is Media Economics?

Media: a medio in communication processes*

Economics : How humans with limited sources are confined for producing commodities and distribute them to man or group another human being*

Media Economics: as Industrial or Economic Institutions PROFIT ORIENTED**

*) Samuelson & Nordhaus

**) Albarran

collects

media MONEY

media

needsProduction CostEmployees’ PayrollProfit

sourceof cashAdvertisersSponsorsPublic

ECONOMICSMedia

PRODUCT SERVICEto public to advertiser

mediawhat SELLS

ECONOMICSMedia

who has the money

brands politician

placementproduct

PRINTED : Advertisment, Product ExposureRADIO : Adlibs, Promo Insertion, Spot, TalkshowONLINE : Endorser/Buzzer/InfluencerTV : TVC, Blocking, Insertion on Infotainment (using Celebrities as Endorser), Running Text, Logo Placement/Sponsorship,OTHERS : Music, Movie, BTL Media Promotion, Event Sponsorship

placementproduct

The (un)Hidden Ad

BTL Report / Event Coverage Product Exposure on an article

Advertorial

ECONOMICSMedia

MEDIA RATE CARD

ECONOMICSMedia

BUDGET FORECASTDiv/Dept: Marketing Communication/Public Relation

(Jan - Dec 2014)

Items Budget

PR - MEDIA PLACEMENT 474.777.250

PR - MEDIA RELATIONS & PRESS CONF 2.415.591.530

PR - DIGITAL PUBLICATION & MEDIA MONITORING 356.610.000

TOTAL 3.246.978.780

ADVERTISER BUDGET

source: Data is taken from a well established company in Jakarta with its demographic A/B.

The name of the company is hidden due to company policy issue.

placementproduct

The (un)Hidden Ad

Defence: It was there just to make the scene looking real. Natural.

placementproduct

The (un)Hidden Ad

A must watch movie:“THE GREATEST MOVIE EVER SOLD”

brands politicswho has the money

GOVERNANCE

Media

keywords

REGULATIONCOMPETITION

MEDIA OWNERSHIP

GOVERNANCEMedia

GOVERNANCEMedia

Formal inFormal

External

Internal

LAWMarket

Public Opinion Review Critics

Management PolicyCultural Organization

ProfessionalismCodes

Professional – Ethical Behaviour

Competition

GOVERNANCEMedia

Conglomeration Oligopoly

Concentration

Vertical Horizontal

to get a clearer view, let’s categorize 3 types of media*

COMMUNITY Local TV, blog, e-magz, students’ newsletterPUBLIC MEDIA i.g: TVRIPRIVATE Commercial Media

*) Eoin

MediaOwnership

GOVERNANCEMedia

to get a clearer view, let’s categorize 3 types of media*

COMMUNITY Local TV, blog, e-magz, students’ newsletterPUBLIC MEDIA i.g: TVRIPRIVATE Commercial Media

*) Eoin

MediaOwnership

GOVERNANCEMedia

THE FACE OF MEDIA

SECOND LAW OF JOURNALISM “CONTENT OF THE MEDIA ALWAYS REFLECTS THE INTERESTS OF

THOSE WHO FINANCE THEM*

GOVERNANCEMedia

Altschull’s (1984)

INDONESIA

Jawa Pos Group | MNC Group | VIVA Group | Femina Group | Mugi Rekso Abadi (MRA) Group | Kompas Gramedia Group | Media Group

Cross Ownership“Kepemilikan silang antara lembaga penyiaran swasta yang menyelenggarakan jasa penyiaran radio, dan lembaga

penyiaran swasta yang menyelenggarakan jasa penyiaran televisi; antara embaga penyiaran swasta dengan perusahaan media cetak; dan antara lembaga penyiaran swasta dan lembaga penyiaran swasta jasa penyiaran lainnya’ baik langsung

maupun tidak langsung, dibatasi.”UU PENYIARAN PASAL 18 ayat 2

MediaOwnership

GOVERNANCEMedia

Ownership EffectsBusiness VS Editorial

Michael Blomberg Rupert Murdoch You know who

PoliticMedia &

Arise as a critical approach to capitalism acceleration

The connection betweenPolitical System | Mass Communication System

in global capitalism

PoliticMedia &

Any connection between Media System & Politic?

FINANCIAL INTEREST

CONFLICT & SUSPICIOUSY= Media & Goverment =

POLITICAL IDEOLOGY

DEMOCRACY

SUMMARY

PoliticMedia &

RegulationMedia

RegulationMedia

Mass MediaDifferent Character - Different Regulation

Regulation ModelsFree Press Model

Broadcasting ModelCommon Carrier Model

Paradigm ShiftMedia Policy

The PhasesCommunication Industry Policy

Public Service PolicyNew Policy

Paradigm ShiftMedia Policy

InternetHybrid

YouClap your hands now, guys!!

thank

“Whom ever controls the media, controls information”